Telemedicine Solutions LLC v. WoundRight Technologies, LLC

27 F. Supp. 3d 883, 2014 U.S. Dist. LEXIS 33232, 2014 WL 1020936
CourtDistrict Court, N.D. Illinois
DecidedMarch 14, 2014
DocketCase No. 13 CV 3431
StatusPublished
Cited by13 cases

This text of 27 F. Supp. 3d 883 (Telemedicine Solutions LLC v. WoundRight Technologies, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Telemedicine Solutions LLC v. WoundRight Technologies, LLC, 27 F. Supp. 3d 883, 2014 U.S. Dist. LEXIS 33232, 2014 WL 1020936 (N.D. Ill. 2014).

Opinion

MEMORANDUM OPINION AND ORDER

Robert M. Dow, Jr., United States District Judge

Plaintiff Telemedicine Solutions LLC and Defendant WoundRight Technologies, LLC are purveyors of electronic systems and products aimed at medical practitioners in the wound care field. Plaintiffs system is called WoundRounds; Defendant’s, WoundRight. In its twelve-count amended complaint against Defendant [27], Plaintiff alleges that Defendant has infringed and diluted Plaintiffs trademark; engaged in unfair competition, cyberpira-cy, and deceptive trade practices; disparaged and defamed Plaintiff; and tortiously interfered with Plaintiffs prospective economic advantage. Defendant has moved to dismiss Plaintiffs amended complaint for lack of personal jurisdiction pursuant to Federal Rule -of Civil Procedure 12(b)(2), or for improper venue pursuant to Rule 12(b)(3). [28]. In the alternative, Defendant seeks to transfer venue to Wyoming pursuant to 28 U.S.C. §§ 1404(a) & 1406(a), and dismiss Counts X, XI, and XII of Plaintiffs complaint pursuant to Rule 12(b)(6). [28]. Plaintiff opposes the motion and requests leave to engage in “jurisdictional discovery to refute” affidavit testimony submitted by Defendant, to “determine how much WoundRight knew about WoundRounds (or Telemedicine), and [to ascertain] whether WoundRight has other minimum contacts with Illinois, in addition to its electronic entry into Illinois and its intentional tortious conduct! ] directed at Illinois and Illinois consumers.” [33] at 3, 11, 15; [40] at 2, 8.

For the reasons stated below, the Court concludes that it lacks personal jurisdiction over Defendant and accordingly grants Defendant’s motion [28] and dismisses the amended complaint for lack of personal jurisdiction. The Court respectfully denies Plaintiffs requests for jurisdictional discovery.

I. Background

For the purposes of the instant motion, the Court accepts as true the factual allegations relevant to jurisdiction made in Plaintiffs amended complaint, and draws all reasonable inferences in its favor. Cent. States, Se. & Sw. Area Pension Fund v. Phencorp Reinsurance Co., Inc., 440 F.3d 870, 878 (7th Cir.2006) The Court also resolves any disputes concerning relevant facts in Plaintiffs favor. Purdue Research Found. v. Sanofi-Synthelabo, S.A., 338 F.3d 773, 782 (7th Cir.2003). To the extent that Defendant has submitted affidavits opposing jurisdiction or contradicting Plaintiffs allegations, however, Plaintiff must go beyond the pleadings and submit affirmative evidence supporting the exercise of jurisdiction. Id. at 783.

[887]*887Plaintiff is a limited liability company that was organized under the laws of Illinois in July 2005. [27] ¶¶ 3, 17. Its principal place of business is Schaumburg, Illinois. Id. ¶ 3. Soon after its organization, Plaintiff entered the wound care industry, promoting, marketing, selling, and providing services related to its “Wound Rounds” system, an electronic documentation and wound care management system that enables medical providers to identify and manage patients at risk for pressure ulcers. Id. ¶ 17. Plaintiff obtained and registered the domain name “wound-rounds.com” in February 2006, and thereafter augmented its online presence by using social media sites such as YouTube, Facebook, Linkedln, and Twitter. Id. ¶ 18. Plaintiff made its “WoundRounds” software and hardware, as well as Internet-based health care information services, available “[a]t least as early as November 1, 2006.” Id. ¶¶ 19-20. Beginning in March 2007, Plaintiff added educational services such as webinars, seminars, teleconferences, and social media presentations to its ‘WoundRounds” offerings, id. ¶ 21, and has provided downloadable webi-nars since early 2010. Id. ¶ 22. ' Plaintiff recently secured federal trademark registrations for its ‘WOUND ROUNDS” system and stylized logo, and has applied for a federal trademark for another stylized version of its “WoundRounds” mark. Id. ¶ 23; id. Ex. 1.

Plaintiffs substantial investments into its product and marketing have paid off. Its ‘WoundRounds” marks have become well-known throughout the wound care industry as emanating from Plaintiff alone, id. ¶ 24, and have provided Plaintiff with a strong national reputation and considerable goodwill with an estimated worth in the millions. Id. ¶¶ 25-26.

Defendant is a limited liability company organized under the laws of Wyoming with its principal place of business in Laramie, Wyoming. Id. ¶2. Defendant uses the term “WoundRight” to denote its goods and services, which according to Plaintiff are “the same or nearly identical” to Plaintiffs “WoundRounds” goods and services. Id. ¶ 27. (Defendant!s affidavit describes its “WoundRight” products as “a complete mobile wound care solution that automate[s] assessment documentation for wounds, ostomies, and incontinence management.” [29-1] ¶ 8. Defendant’s “WoundRight” electronic application (“app”) is intended for use on mobile devices, id. ¶ 7, and it is available for download from third-party websites that can be accessed from Defendant’s website, “woun-drightapp.com.” [27] ¶ 33; [29-1] ¶¶20, 25-26, [29-2] ¶¶ 7-8. Defendant’s website, which was registered on May 15, 2012, [27] ¶ 32, can be accessed by customers anywhere in the United States, see [27] ¶ 33, but customers cannot actually download the WoundRight app directly from the website. See [27] ¶ 33; [29-1] ¶¶20, 25-26, [29-2] ¶¶ 7-8. Customers likewise cannot purchase supplemental “census credits” to expand the utility of the app without placing a telephone call to Defendant’s Wyoming office. [29-1] ¶¶ 25-27; [29-2] ¶¶7-15. Defendant does not have (and never has had) any physical presence in Illinois. [29-1] ¶¶ 31-36. Defendant never has sold any products or services to customers in Illinois. [29-1] ¶ 28. It has sent employees to demonstrate and sell its products at industry conferences around the country, but none of those conferences was in Illinois. See [27] ¶ 36; [29-1] ¶¶ 40-41. Plaintiff alleges that Defendant’s actions nonetheless specifically targeted the Illinois market for an electronic wound care and management software system. [27] ¶ 12.

Defendant, like Plaintiff, maintains a presence on the Internet beyond its website. Defendant uses social media, includ[888]*888ing Facebook and Twitter, to communicate with potential customers throughout the United States. [27] ¶ 35; id. Ex. 7-8; [29-2] ¶¶ 19, 21. Through these social media channels, Defendant promotes its product and calls attention to the wound care field generally. For instance, in December 2012, Defendant tweeted, “Close the gap between research and clinical practice with WoundRight.” [27] ¶ 45; id. Ex. 10. This tweet included a link to an article authored by several individuals associated with Plaintiff (and expressly identified as such). [27] ¶ 45; id. Ex. 10. Defendant also uses social media channels to interact with individuals in a number of states, [27] ¶ 87, though it has not specifically targeted either its Facebook postings or Twitter tweets to consumers in -Illinois. [29-2] ¶ 19.

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Bluebook (online)
27 F. Supp. 3d 883, 2014 U.S. Dist. LEXIS 33232, 2014 WL 1020936, Counsel Stack Legal Research, https://law.counselstack.com/opinion/telemedicine-solutions-llc-v-woundright-technologies-llc-ilnd-2014.